Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start-up company. What amount of child and dependent care credit can Julie claim in 2022 in each of the following alternative scenarios?Required:Julie paid $2,000 to the day care center, and her AGI is $50,000 (all salary).Julie paid $2,000 to the day care center, and her AGI is $14,000 (all salary).Julie paid $4,000 to the day care center, and her AGI is $14,000 ($2,000 salary and $12,000 unearned income). EXHIBIT 8-10 Child and Dependent Care Credit PercentageThen the percentage is35%343332313029282726252423222120If AGI is over$015,00017,00019,00021,00023,00025,00027,00029,00031,00033,00035,00037,00039,00041,00043,000Source: $21.But not over$15,00017,00019,00021,00023,00025,00027,00029,00031,00033,00035,00037,00039,00041,00043,000No limit

It has been provided: Part a. Paid to day care center = $2,000 AGI = $50,000 (all salary). Part b.…

Answered: Julie paid a day care center to watch…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required:

Julie paid $2,000 to the day care center, and her AGI is $50,000 (all salary).
Julie paid $2,000 to the day care center, and her AGI is $14,000 (all salary).
Julie paid $4,000 to the day care center, and her AGI is $14,000 ($2,000 salary and $12,000 unearned income).

EXHIBIT 8-10 Child and Dependent Care Credit Percentage
Then the percentage is
35%
34
33
32
31
30
29
28
27
26
25
24
23
22
21
20
If AGI is over
$0
15,000
17,000
19,000
21,000
23,000
25,000
27,000
29,000
31,000
33,000
35,000
37,000
39,000
41,000
43,000
Source: $21.
But not over
$15,000
17,000
19,000
21,000
23,000
25,000
27,000
29,000
31,000
33,000
35,000
37,000
39,000
41,000
43,000
No limit

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